Explore BrainMass

Explore BrainMass

    SAS 85

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Question:

    SAS 85 requires that auditors obtain a Management Representation letter on matters of audit importance. Discuss the make-up of this letter and the information contained within. Does the letter provide comfort to the auditor? If this is simply a letter stating certain information from the client and is not audited in any way, why is it important?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:08 pm ad1c9bdddf
    https://brainmass.com/business/auditing/sas-85-167898

    Solution Preview

    SAS 85 requires that auditors obtain a Management Representation letter on matters of audit importance. Discuss the make-up of this letter and the information contained within. Does the letter provide comfort to the auditor? If this is simply a letter stating certain information from the client and is not audited in any way, why is it important?

    Question:

    SAS 85 requires that auditors obtain a Management Representation letter on matters of audit importance. Discuss the make-up of this letter and the information contained within. Does the letter provide comfort to the auditor? If this is simply a letter stating certain information from the client and is not audited in any way, why is it important?

    THE MAKEUP OF THE LETTER:
    The Management Representation letter is a letter addressed to the auditor to minimize the misunderstandings between the two and clarify some issues. Normally a management representation letter has items like the effectiveness of the firm's internal control system, the disclosures with respect to noncompliance with law, the extent to which the financial management systems comply with the GAAP, the federal and state laws that have a direct ...

    Solution Summary

    SAS 85 is discussed very comprehensively in this explanation.

    $2.19

    ADVERTISEMENT